2. THE POWER OF NUMBERS
Most companies project their future based on
historical data.
They say if we did $5,000,000 last year a 15%
increase would be nice and it’s achievable so our
target is $5,750,000.
This is linear thinking
High performance growth revolves around
exponential thinking.
How do we create compounded growth?
The Business Formula allows us to break the
growth into 5 focus areas and asks how can we
can create 15% growth in each section?
3. High performance businesses know
the Business Formula
LEADS
X
CONVERSION
=
CUSTOMER
X
AVERAGE SALE
X
TRANSACTION FREQUENCY
=
REVENUE
X
MARGIN
=
PROFIT
Want to see how this works?
5. Let’s add some numbers
LEADS
X
CONVERSION
=
4,000
X
25 %
=
CUSTOMER
1,000
X
AVERAGE SALE
X
TRANSACTION FREQUENCY
=
X
$100
X
2
=
REVENUE
$200,000
X
MARGIN
=
X
25%
=
PROFIT
$50,000
7. Let’s do the numbers again!
With just a 10% increase in each area…
LEADS
X
CONVERSION
=
CUSTOMER
X
AVERAGE SALE
X
TRANSACTION
FREQUENCY
=
REVENUE
X
MARGIN
=
PROFIT
4,000
4,000
X
x
25%
27.5%
=
=
1,000
1,210
x
x
$100
$110
x
x
2
2.2
=
=
$200,000
$292,820
x
x
25%
27.5%
=
=
$50,000
$80,525
You now have compounding growth
8. What do YOU need to do to achieve this?
Get laser focused on the 5 key areas of growth
Lead Generation
Conversion rate
Average dollar sale
Number of Transactions
Profit Margin
We’ve got proven strategies for each…
Want some?
Call for a 30min strategy session
with one of the Squirrel Team
1300 780 757
9. Want to hear a real story?
Watch this short video
to learn how the
4 x Australian Retail Business of the Year
used the Business Formula